Europa Publications, Inc., specializes in reference books that keep abreast of the rapidly changing political and economic issues in Europe. The results of the company's operations during the prior year are given in the following table. All units produced during the year were sold. (Ignore income taxes) Sales revenue $1,800,000 Manufacturing costs: Fixed 500,000 Variable 8B3, 000 Selling costs: Fixed 36,000 Variable 66,000 Administrative costs: Fixed 76,000 Variable 31,000 Required: 1-a. Prepare a traditional income statement for the company 1-b. Prepare a contribution income statement for the company 2. What is the firm's operating leverage for the sales volume generated daring the prior year? 3. Suppose sales revenue increases by 15 percent. What will be the percentage increase in net income? 4. Which income statement would an operating manager use to answer requirement 3? . Prepare a traditional income statement for the company. Req 1A Reg 1B Reg 2 Req 3 Reg 4 . EUROPA PUBLICATIONS, INC. Income Statement For the Year Ended December 31, 20XX Sales Cost of goods sold 7 Gross margin Operating expenses Administrative expenses Selling expenses ? 7 2 2 Hef income